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The Pension Benefit Guaranty Corporation (PBGC)
Pension fund · Founded 1974 · Alexandria, United States
Government;Insurance;Life Insurance
Who The Pension Benefit Guaranty Corporation (PBGC) is.
Where the institution came from, whose capital it manages, and how that capital is allocated — from Dealroom's LP research.
Historical Background
- The Pension Benefit Guaranty Corporation (PBGC) was established in 1974 under the Employee Retirement Income Security Act (ERISA).
- Its creation was a response to the termination of several large pension plans in the 1960s and 1970s, which left many retirees with a fraction of their promised benefits.
Source of Capital
- The PBGC is a self-financing federal corporation and does not use taxpayer dollars for its operations.
- Its primary sources of funding are insurance premiums paid by the sponsors of defined-benefit pension plans, assets from terminated plans that it takes over, and investment income.
Allocation Strategy
- The PBGC's investment policy is designed to ensure the agency can meet its long-term obligations to retirees.
- The allocation strategy involves a diversified portfolio, with a significant portion invested in a custom liability-driven investing (LDI) fixed-income portfolio designed to hedge interest rate risk.
- A smaller portion of the portfolio is allocated to return-seeking assets, including equities and other growth-oriented investments, to improve the agency's overall financial position.
The funds The Pension Benefit Guaranty Corporation (PBGC) backs.
The Pension Benefit Guaranty Corporation (PBGC) is a limited partner in 171 funds. 38 of them place in the Power Law Investor Ranking, and the best-ranked are shown here.
How The Pension Benefit Guaranty Corporation (PBGC)’s fund book is spread.
The 171 funds The Pension Benefit Guaranty Corporation (PBGC) backs, by where the manager is headquartered and how many funds that manager has raised.
Where those managers are based
By fund headquarters.
- North America 14887%
- Europe 1710%
- Rest of world 64%
United States 148 · United Kingdom 10 · Ireland 2 · Sweden 2
How established those managers are
Managers grouped by how many funds they have raised. 33 emerging (three funds or fewer), 65 established — across the 98 of 171 with a fund history on record.
Other LPs.
Other pension funds in the Power Law LP ranking, closest to The Pension Benefit Guaranty Corporation (PBGC) by combined power-law score — North America first, then the nearest worldwide.